2026 Executive Outlook | Michael Thornhill, Gallagher

Canada’s P&C insurance market will be shaped by a variety of factors in 2026, but technology and talent will be at the forefront of its transformation.

The rapid adoption of artificial intelligence, data analytics and digital platforms is revolutionizing the industry. These advancements offer significant efficiency gains while introducing new risks that challenge traditional risk management practices.

Brokerages must prioritize technological investments to remain competitive, particularly as direct-to-consumer models and insurtech disruptors continue to reshape the market. These technologies are essential for improving service delivery, claims processing and overall client satisfaction.

However, the speed of digitization is creating exposures outpacing the ability of a business to measure, mitigate and transfer risks effectively. This underscores the need for proactive planning and leveraging of the right tools to manage these challenges.

Talent acquisition and retention remain critical challenges for the industry, particularly as the demand for tech-savvy professionals such as underwriters, claims adjusters and data analysts continues to grow.

To attract and retain top talent, brokerages must offer more than just competitive salaries — they need to provide flexibility, a sense of purpose and clear career development paths.

The war for talent is intensifying, and brokerages failing to invest in their people risk falling behind. This focus on talent is as important as technological investment; both are necessary to meet evolving client expectations and maintain a competitive edge in a rapidly changing market.

Although technology and talent are key areas of focus, the market next year will also be influenced by other factors, such as climate-driven natural catastrophes, regulatory pressures and shifting client demands.

For example, the increasing frequency of natural disasters and tightening regulatory requirements will compel insurers and brokers to reassess their strategies.

Brokerages balancing these complexities with agility and foresight will be best positioned for success. In this evolving landscape, leaders will be defined by their ability to integrate technological innovation, attract top talent and navigate broader market challenges.